Connect America Fund, 52616-52619 [2012-21314]
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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Rules and Regulations
could make them eligible for premium
tax credits under Treasury regulations
(see 26 CFR 1.36–2(a)(1)) or for costsharing reductions starting in 2014.7
This is consistent with the rationale
above.
We invite comment on the
determination to exclude these
individuals from eligibility for the PCIP
program and from eligibility for
coverage through the Affordable
Insurance Exchanges, with the
consequences noted above with respect
to the premium tax credits and the costsharing reductions.
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III. Interim Final Regulation and
Waiver of Delay of Effective Date
Under the Administrative Procedure
Act (APA) (5 U.S.C. 551, et seq.), while
a notice of proposed rulemaking and an
opportunity for public comment is
generally required before promulgation
of regulations, this is not required when
an agency, for good cause, finds that
notice and public comment thereon are
impracticable, unnecessary, or contrary
to the public interest.
HHS has determined that issuing this
regulation in proposed form, such that
it would not become effective until after
public comment, would be contrary to
the public interest. Because the PCIP
program—a temporary program with
limited funding—is currently enrolling
eligible individuals and providing
benefits for such enrollees, it is
important that we provide clarity with
respect to eligibility for this new and
unforeseen group of individuals as soon
as possible, before anyone with deferred
action under the DACA process applies
to enroll in the PCIP program.
HHS is issuing this amendment as an
interim final rule with comment so as to
provide the public with an opportunity
for comment on the amendment,
including to gather public comment on
the implications of the amendment.
The APA also generally requires that
a final rule be effective no sooner than
30 days after the date of publication in
the Federal Register. This 30-day delay
in effective date can be waived,
however, if an agency finds good cause
as to why the effective date should not
7 This is consistent with prior guidance issued by
DHS: ‘‘If my case is deferred, will I be eligible for
premium tax credits and reduced cost sharing
through Affordable Insurance Exchanges starting in
2014? No. The Departments of Health and Human
Services and the Treasury intend to conform the
relevant regulations to the extent necessary to
exempt individuals with deferred action for
childhood arrivals from eligibility for premium tax
credits and reduced cost sharing. This is consistent
with the policy under S. 3992, the Development,
Relief, and Education for Alien Minors (DREAM)
Act of 2010.’’ See Consideration of Deferred Action
for Childhood Arrivals, https://www.uscis.gov/
childhoodarrivals.
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be delayed, and the agency incorporates
a statement of the finding and its reason
in the rule issued.
For the same reason that we are
issuing an interim final rule, we are
making it effective immediately; that is,
because the PCIP program—a temporary
program with limited funding—is
currently enrolling eligible individuals
and providing benefits for such
enrollees, it is important that we
provide clarity with respect to the
eligibility of this new and unforeseen
group of individuals as soon as possible,
before anyone with deferred action
under the DACA process applies to
enroll in the PCIP program.
IV. Executive Orders 13563 and 12866
Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health, and safety
effects, distributive impacts, and
equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits, of
reducing costs, of harmonizing rules,
and of promoting flexibility. This rule
has been designated a ‘‘significant
regulatory action,’’ although not
economically significant, under section
3(f) of Executive Order 12866.
Accordingly, the rule has been reviewed
by the Office of Management and
Budget.
V. Statutory Authority
The amendment to the interim final
regulation is adopted pursuant to the
authority contained in section 1101 of
the Patient Protection and Affordable
Care Act (Pub. L. 111–148).
List of Subjects in 45 CFR Part 152
Administrative practice and
procedure, Health care, Health
insurance, Penalties, Reporting and
recordkeeping requirements.
For the reasons stated in the
preamble, the Department of Health and
Human Services amends 45 CFR part
152 as follows:
PART 152—PRE-EXISTING CONDITION
INSURANCE PLAN PROGRAM
1. The authority citation for part 152
continues to read as follows:
■
Authority: Sec. 1101 of the Patient
Protection and Affordable Care Act (Pub. L.
111–148).
2. Section 152.2 is amended by adding
paragraph (8) to the definition of
‘‘lawfully present’’ to read as follows:
■
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§ 152.2
Definitions.
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Lawfully present means— * * *
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(8) Exception. An individual with
deferred action under the Department of
Homeland Security’s deferred action for
childhood arrivals process, as described
in the Secretary of Homeland Security’s
June 15, 2012, memorandum, shall not
be considered to be lawfully present
with respect to any of the above
categories in paragraphs (1) through (7)
of this definition.
*
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Dated: August 24, 2012.
Marilyn Tavenner,
Acting Administrator, Centers for Medicare
& Medicaid Services.
Approved: August 27, 2012.
Kathleen Sebelius,
Secretary, Department of Health and Human
Services.
[FR Doc. 2012–21519 Filed 8–28–12; 4:15 pm]
BILLING CODE 4120–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 54
[WC Docket Nos. 10–90, 07–135, 05–337,
03–109; GN Docket No. 09–51; CC Docket
Nos. 01–92, 96–45; WT Docket No. 10–208;
DA 12–1155]
Connect America Fund
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this Order, the Wireline
Competition Bureau (Bureau) clarifies
certain rules relating to Phase I of the
Connect America Fund. Commission
staff have received informal inquiries
from price cap companies on certain
implementation aspects of the rules
governing Connect America Fund Phase
I. The Bureau also makes an amendment
to one of the Commission’s rules to fix
a clerical error relating to the support
for carriers serving remote areas of
Alaska.
DATES: Effective October 1, 2012.
FOR FURTHER INFORMATION CONTACT:
Joseph Cavender, Wireline Competition
Bureau, (202) 418–7400 or TTY: (202)
418–0484.
SUPPLEMENTARY INFORMATION: This is a
summary of the Wireline Competition
Bureau Order in WC Docket Nos. 10–90,
07–135, 05–337, 03–109; GN Docket No.
09–51; CC Docket Nos. 01–92, 96–45;
WT Docket No. 10–208; DA 12–1155,
released on July 18, 2012. The full text
SUMMARY:
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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Rules and Regulations
of this document is available for public
inspection during regular business
hours in the FCC Reference Center,
Room CY–A257, 445 12th Street SW.,
Washington, DC 20554. Or at the
following Internet address: https://
transition.fcc.gov/Daily_Releases/Daily_
Business/2012/db0718/DA-12-1155A1.
pdf.
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I. Introduction
1. In this Order, the Wireline
Competition Bureau (Bureau) clarifies
certain rules relating to Phase I of the
Connect America Fund. Commission
staff have received informal inquiries
from price cap companies on certain
implementation aspects of the rules
governing Connect America Fund Phase
I. The Bureau also makes an amendment
to one of the Commission’s rules to fix
a clerical error relating to the support
for carriers serving remote areas of
Alaska.
II. Background
2. In the USF/ICC Transformation
Order, 76 FR 73830 (November 29,
2011), the Commission adopted a
framework for the Connect America
Fund to provide support in the
territories of price cap carriers and their
rate-of-return affiliates based on a
combination of competitive bidding and
a forward-looking cost model. The
Commission observed that developing a
new cost model and bidding mechanism
could be expected to take some time. To
spur broadband deployment even as
those mechanisms are being developed,
the Commission established Phase I of
the Connect America Fund, a transition
mechanism from the old high-cost
support mechanisms for price cap
carriers to the new Connect America
Fund. In Phase I, the Commission froze
current high-cost support for price cap
carriers and their affiliates, and, in
addition, committed up to $300 million
in incremental support to promote
broadband deployment. The $300
million in incremental support was
allocated among price cap carriers using
a formula to estimate wire center costs
that was based on the prior high-cost
proxy model.
3. Participation in the Connect
America Fund Phase I incremental
support program is optional. But
carriers that accept funding are required
to deploy broadband to a number of
locations, currently unserved by fixed
broadband, equal to the amount of
incremental support the carrier accepts
divided by $775. Each carrier accepting
funding must identify the areas, by wire
center and census block, in which it
intends to deploy broadband to meet its
obligation, when it files its notice of
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acceptance. Carriers are required to
complete deployment to no fewer than
two-thirds of the required number of
locations within two years and all
required locations within three years,
and they must certify that they have
done so as part of their annual
certifications under § 54.313 of the
Commission’s rules. The Commission
also provided that ‘‘[c]arriers failing to
meet a deployment milestone will be
required to return the incremental
support distributed in connection with
that deployment obligation and will be
potentially subject to other penalties,
including additional forfeitures, as the
Commission deems appropriate.’’
However, the Commission continued,
‘‘[i]f a carrier fails to meet the two-thirds
deployment milestone within two years
and returns the incremental support
provided, and then meets its full
deployment obligation associated with
that support by the third year, it will be
eligible to have support it returned
restored to it.’’
III. Discussion
4. First, the Bureau clarifies how to
calculate the amount of support a carrier
must return for failing to meet its
deployment requirements. Specifically,
if a carrier fails to meet its deployment
obligations, it will be required to return
to the Commission an amount equal to
$775 multiplied by the number of
locations to which the carrier was
required to deploy to but did not, but a
carrier will not be required to ‘‘pay
twice’’ for any failure to meet a
requirement. For example, if a carrier
accepted $6,975,000 and committed to
deploying to 9,000 locations over three
years, but only deployed to 5,800 by the
end of two years, rather than the 6,000
required at that milestone, the carrier
would be required to return $155,000 of
its incremental support (200 locations
times $775). Similarly, a carrier that
accepted the same amount and
deployed to all 6,000 locations by the
second year but deployed to only 8,900
by the end of the third year would be
required to return $77,500 (100
locations times $775). However, if the
same carrier deployed to 5,800 of its
required 6,000 locations by the second
year, returned the $155,000 required,
and then continued its deployment,
reaching 8,900 by the end of the third
year, it would have $77,500 of its
returned support restored. The Bureau
notes that this discussion does not
address any additional penalties that the
Commission may choose to impose on
any carrier that fails to meet its
deployment obligation, as stated in the
Order.
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5. Second, the Bureau clarifies that
when a carrier files its notice of
acceptance of funding, identifying the
wire centers and census blocks in which
it intends to deploy, it is not binding
itself to deploy only in those areas, nor
is it committing to deploy to every
unserved location in those areas. The
Bureau clarifies that carriers are
expected to make a good faith effort to
identify where they will deploy when
they file their notices of acceptance. The
Bureau observes, in this regard, that
there are a number of practical obstacles
that may make it difficult for carriers to
commit irrevocably to a particular
deployment plan by July 24th. For
example, carriers may not have perfect
information now about the number of
locations in every potential area, the
number of locations in an area may
change over time, and the aggressive
schedule for identifying intended
buildout locations may make it difficult
for carriers to gain complete information
about potential deployments prior to
filing their notices of acceptance.
Accordingly, the Bureau clarifies that
carriers may, in satisfaction of their
deployment requirement, deploy to
eligible locations not identified in their
notices of acceptance, but will be
required to identify subsequently where
deployment actually occurred.
Similarly, if a carrier finds that
deploying to an area it intended to
deploy to would be impractical, it will
not be subject to penalties on account of
its failure to deploy broadband to that
particular area.
6. Third, the Bureau clarifies that the
certification associated with carriers’
two- and three-year deployment
milestones, which carriers must include
as part of their annual filings under
§ 54.313(b) of the Commission’s rules,
must specify the number of locations in
a census block-wire center combination
to which they have actually built.
Carriers must identify the precise
number of locations so that appropriate
adjustments, if any, can be made to
support previously provided, if a carrier
fails to meet its deployment obligation.
To facilitate the ability of USAC and the
Commission to validate that carriers
have, in fact, met their deployment
obligations, carriers must be prepared,
upon request, to provide sufficient
information regarding the location of
actual deployment to confirm the
availability of service at that location.
7. Fourth, the Bureau clarifies that the
certifications each carrier makes when it
accepts incremental support—that the
locations to be deployed to are shown
on the National Broadband Map as
unserved by fixed broadband by any
provider other than the certifying entity
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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Rules and Regulations
itself or an affiliate; that, to the best of
the carrier’s knowledge, the locations
are, in fact, unserved by fixed
broadband; that the carrier’s capital
improvement plan did not already
include plans to complete broadband
deployment within the next three years
to the locations to be counted to satisfy
the deployment obligation; and that
incremental support will not be used to
satisfy any merger commitment or
similar regulatory obligation—are
certifications that apply to all locations
that in fact the carrier extends
broadband to, using Connect America
Phase I incremental support. That is, if
a carrier finds it necessary to deploy to
locations other than the locations
identified in its initial acceptance filing,
those other locations may not be in
areas, for example, that were shown on
the National Broadband Map, at the
time of acceptance, as served.
8. Fifth, the Bureau clarifies that
when a carrier certifies that the
locations to which it will deploy are
shown as unserved by fixed broadband
on the ‘‘current’’ version of the National
Broadband Map, the ‘‘current’’ version
of the National Broadband Map is the
version that was publicly available on
the National Broadband Map Web site
on the date eligible support amounts
were announced. The Commission
intended for carriers to have 90 days to
determine how much incremental
support they would accept and which
wire centers and census blocks they
would deploy to in order to meet their
Connect America Phase I commitments.
To the extent the National Broadband
Map data is updated during the 90-day
period in which carriers are evaluating
how much incremental support they
will accept, that could leave carriers
with less time to evaluate the updated
version of the map. Potentially altering
Connect America Phase I incremental
support deployment plans before the
deadline for them to accept funding
would be unreasonable and contrary to
the Commission’s framework for
Connect America Phase I funding, and
we clarify the requirement to ensure
that carriers have a full 90 days to make
their Connect America I Phase plans.
9. Sixth, the Bureau further clarifies
that the term ‘‘fixed broadband’’ for the
purposes of Connect America Phase I
includes any technology identified on
the then-current version of the National
Broadband map that is not identified as
a mobile technology or a satellite-based
technology. In this regard, the Bureau
observes that the technologies reported
on the National Broadband Map at the
time the Order was issued varied from
the technologies listed on the
Broadband Map currently. The
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Commission in the Order distinguished
fixed terrestrial broadband technologies
from mobile and satellite broadband
technologies, determining that only
fixed terrestrial broadband technologies
are relevant to the determination of
whether an area is served for the
purposes of Connect America Phase I;
the clarification the Bureau provides
here reflects this distinction.
10. Finally, the Bureau corrects
§ 54.307(e)(5) of the Commission’s rules.
Paragraph 180 of the first erratum to the
USF/ICC Transformation Order
corrected § 54.307(e)(5) to replace
‘‘described in paragraph (e)(2)(iv) of this
section’’ with ‘‘described in paragraph
(e)(2)(iii) of this section.’’ The text to be
replaced appeared twice in
§ 54.307(e)(5), but, through a clerical
error, only the second instance of that
text in the rule was corrected. We now
correct the rule to replace the remaining
instance of that text.
addressed by the Final Regulatory
Flexibility Analysis attached to USF/
ICC Transformation Order. Therefore,
the Bureau certifies that the
requirements of this Order will not have
a significant economic impact on a
substantial number of small entities.
The Commission will send a copy of the
Order including a copy of this final
certification in a report to Congress
pursuant to the Small Business
Regulatory Enforcement Fairness Act of
1996. In addition, the Order and this
certification will be sent to the Chief
Counsel for Advocacy of the Small
Business Administration, and will be
published in the Federal Register.
IV. Procedural Matters
V. Ordering Clauses
A. Paperwork Reduction Act
15. Accordingly, it is ordered,
pursuant to the authority contained in
sections 1, 2, 4(i), 201–206, 214, 218–
220, 251, 252, 254, 256, 303(r), 332, and
403 of the Communications Act of 1934,
as amended, and section 706 of the
Telecommunications Act of 1996, 47
U.S.C. 151, 152, 154(i), 201–206, 214,
218–220, 251, 252, 254, 256, 303(r), 332,
403, 1302, and pursuant to §§ 0.91,
0.201(d), 0.291, 1.3, and 1.427 of the
Commission’s rules, 47 CFR 0.91,
0.201(d), 0.291, 1.3, 1.427 and pursuant
to the delegation of authority in
paragraph 1404 of FCC 11–161 (rel. Nov.
18, 2011), that this Order is adopted,
effective October 1, 2012.
11. This document does not contain
new or modified information collection
requirements subject to the Paperwork
Reduction Act of 1995 (PRA), Public
Law 104–13. Therefore, it does not
contain any new or modified
information collection burden for small
business concerns with fewer than 25
employees, pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4).
B. Final Regulatory Flexibility Act
Certification
12. The Regulatory Flexibility Act of
1980, as amended (RFA), requires that a
regulatory flexibility analysis be
prepared for rulemaking proceedings,
unless the agency certifies that ‘‘the rule
will not have a significant economic
impact on a substantial number of small
entities.’’ The RFA generally defines
‘‘small entity’’ as having the same
meaning as the terms ‘‘small business,’’
‘‘small organization,’’ and ‘‘small
governmental jurisdiction.’’ In addition,
the term ‘‘small business’’ has the same
meaning as the term ‘‘small business
concern’’ under the Small Business Act.
A small business concern is one which:
(1) Is independently owned and
operated; (2) is not dominant in its field
of operation; and (3) satisfies any
additional criteria established by the
Small Business Administration (SBA).
13. This Order clarifies, but does not
otherwise modify, the USF/ICC
Transformation Order. These
clarifications do not create any burdens,
benefits, or requirements that were not
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C. Congressional Review Act
14. The Commission will send a copy
of this Order to Congress and the
Government Accountability Office
pursuant to the Congressional Review
Act.
Federal Communications Commission.
Trent Harkrader,
Division Chief, Telecommunications Access
Policy Division, Wireline Competition Bureau.
Final Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 54 to
read as follows:
PART 54—UNIVERSAL SERVICE
1. The authority citation for part 54
continues to read as follows:
■
Authority: 47 U.S.C. 151, 154(i), 201, 205,
214, 219, 220, 254, 303(r), 403, and 1302
unless otherwise noted.
2. Amend § 54.307 by revising
paragraph (e)(5) to read as follows:
■
§ 54.307 Support to a competitive eligible
telecommunications carrier.
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(e) * * *
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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Rules and Regulations
(5) Implementation of Mobility Fund
Phase II Required. In the event that the
implementation of Mobility Fund Phase
II has not occurred by June 30, 2014,
competitive eligible
telecommunications carriers will
continue to receive support at the level
described in paragraph (e)(2)(iii) of this
section until Mobility Fund Phase II is
implemented. In the event that Mobility
Fund Phase II for Tribal lands is not
implemented by June 30, 2014,
competitive eligible
telecommunications carriers serving
Tribal lands shall continue to receive
support at the level described in
paragraph (e)(2)(iii) of this section until
Mobility Fund Phase II for Tribal lands
is implemented, except that competitive
eligible telecommunications carriers
serving remote areas in Alaska and
subject to paragraph (e)(3) of this section
shall continue to receive support at the
level described in paragraph (e)(3)(v) of
this section.
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[FR Doc. 2012–21314 Filed 8–29–12; 8:45 am]
BILLING CODE 6712–01–P
Highway Traffic Safety Administration,
U.S. Department of Transportation, 1200
New Jersey Avenue SE., West Building,
Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT:
For non-legal issues: Ms. Carla Rush,
Office of Crashworthiness Standards,
National Highway Traffic Safety
Administration, 1200 New Jersey
Avenue SE., Washington, DC 20590
(telephone 202–366–1740, fax 202–
493–2739).
For legal issues: Mr. William Shakely,
Office of the Chief Counsel, National
Highway Traffic Safety
Administration, 1200 New Jersey
Avenue SE., Washington, DC 20590
(telephone 202–366–2992, fax 202–
366–3820).
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. NPRM Summary
III. Discussion of Comments and Agency
Decision
IV. Rulemaking Analyses and Notices
I. Background 1
DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety
Administration
49 CFR Part 595
[Docket No. NHTSA–2012–0078]
RIN 2127–AL19
Make Inoperative Exemptions; Retrofit
On-Off Switches for Air Bags
National Highway Traffic
Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Final rule.
AGENCY:
NHTSA has a regulation that
permits motor vehicle dealers and repair
businesses to install retrofit on-off
switches for air bags in vehicles owned
by or used by persons whose request for
a switch has been approved by the
agency. This regulation is only available
for motor vehicles manufactured before
September 1, 2012. This document
extends the availability of this
regulation for three additional years, so
that it applies to motor vehicles
manufactured before September 1, 2015.
DATES: Effective Date: This rule is
effective August 30, 2012. Petitions:
Petitions for reconsideration must be
received by October 15, 2012.
ADDRESSES: Any petitions for
reconsideration should refer to the
docket number of this document and be
submitted to: Administrator, National
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SUMMARY:
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To prevent or mitigate the risk of
injuries or fatalities in frontal crashes,
Federal Motor Vehicle Safety Standard
(FMVSS) No. 208, ‘‘Occupant crash
protection’’ (49 CFR 571.208), requires
that vehicles be equipped with seat belts
and frontal air bags.
In the 1990s, while air bags proved to
be highly effective in reducing fatalities
from frontal crashes, they were found to
cause a small number of fatalities,
especially to unrestrained, out-ofposition children, in relatively low
speed crashes.2 To address this
problem, NHTSA developed a plan that
included an array of immediate, interim
and long-term measures. As one of the
interim measures, on November 21,
1997, NHTSA published in the Federal
Register (62 FR 62406) a final rule
permitting motor vehicle dealers and
repair businesses to install retrofit on-off
switches for frontal air bags in vehicles
owned by or used by persons whose
request for a switch had been approved
by the agency (subpart B of 49 CFR Part
595). This rule provided a limited
exemption from a statutory provision
that generally prohibits motor vehicle
dealers and repair businesses from
making inoperative any part of a device
or element of design installed on or in
a motor vehicle or motor vehicle
1 For a more detailed discussion, see the June 8,
2012 Notice of Proposed Rulemaking (77 FR 33998).
2 See preamble to agency final rule on advanced
air bags, 65 FR 30680, 30682–83, May 12, 2000.
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52619
equipment in compliance with an
applicable FMVSS.3
Under the procedures set forth in the
1997 rule, vehicle owners can request a
retrofit air bag on-off switch by
completing an agency request form
(Appendix B of Part 595) and submitting
the form to the agency. Owners must
certify that they have read the
information brochure, in Appendix A of
Part 595, discussing air bag safety and
risks. The brochure describes the steps
that the vast majority of people can take
to minimize the risk of serious injuries
from air bags while preserving the
benefits of air bags, without going to the
expense of buying an on-off switch. The
agency developed the brochure to
enable owners to determine whether
they are, or a user of their vehicle is, in
one of the groups of people at risk of a
serious air bag injury and to make a
careful, informed decision about
requesting an on-off switch.4 Owners
also must certify that they or another
user of their vehicle is a member of one
of the risk groups. Since the risk groups
for drivers are different from those for
passengers, a separate certification must
be made on the request form for each
frontal air bag to be equipped with a
retrofit air bag on-off switch.
If NHTSA approves a request, the
agency will send the owner a letter
authorizing the installation of one or
more on-off switches in the owner’s
vehicle. The owner may give the
authorization letter to a dealer or repair
business, which may then install an onoff switch for the driver or passenger air
bag or both, as approved by the agency.
The retrofit air bag on-off switch must
meet certain criteria, such as being
equipped with a telltale light to alert
vehicle occupants when an air bag has
been turned off. The dealer or repair
3 The ‘‘make inoperative’’ provision is at 49
U.S.C. 30122.
4 At NHTSA’s request, an expert panel of
physicians convened to formulate
recommendations on specific medical indications
for air bag deactivation. The panel concluded that
air bags are effective lifesavers and that a medical
condition does not warrant turning off an air bag
unless the condition makes it impossible for a
person to maintain an adequate distance from the
air bag. Specifically, the panel recommended
disconnecting an air bag if a safe sitting distance or
position cannot be maintained by a: driver or front
passenger because of scoliosis, osteoporosis/
arthritis; driver because of achondroplasia; or
passenger because of Down syndrome and
atlantoaxial instability. The panel also warranted
the disconnection of air bags if the need for
wheelchair related modifications made it necessary
or if there is a medical condition that requires an
infant or child to be placed in the front passenger
seat for monitoring purposes. (The Ronald Reagan
Institute of Emergency Medicine Department of
Emergency Medicine and The National Crash
Analysis Center, ‘‘National Conference on Medical
Indications for Air Bag Disconnection,’’ July 16–18,
1997.)
E:\FR\FM\30AUR1.SGM
30AUR1
]]>Agencies
[Federal Register Volume 77, Number 169 (Thursday, August 30, 2012)]
[Rules and Regulations]
[Pages 52616-52619]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-21314]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket Nos. 10-90, 07-135, 05-337, 03-109; GN Docket No. 09-51; CC
Docket Nos. 01-92, 96-45; WT Docket No. 10-208; DA 12-1155]
Connect America Fund
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this Order, the Wireline Competition Bureau (Bureau)
clarifies certain rules relating to Phase I of the Connect America
Fund. Commission staff have received informal inquiries from price cap
companies on certain implementation aspects of the rules governing
Connect America Fund Phase I. The Bureau also makes an amendment to one
of the Commission's rules to fix a clerical error relating to the
support for carriers serving remote areas of Alaska.
DATES: Effective October 1, 2012.
FOR FURTHER INFORMATION CONTACT: Joseph Cavender, Wireline Competition
Bureau, (202) 418-7400 or TTY: (202) 418-0484.
SUPPLEMENTARY INFORMATION: This is a summary of the Wireline
Competition Bureau Order in WC Docket Nos. 10-90, 07-135, 05-337, 03-
109; GN Docket No. 09-51; CC Docket Nos. 01-92, 96-45; WT Docket No.
10-208; DA 12-1155, released on July 18, 2012. The full text
[[Page 52617]]
of this document is available for public inspection during regular
business hours in the FCC Reference Center, Room CY-A257, 445 12th
Street SW., Washington, DC 20554. Or at the following Internet address:
https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0718/DA-12-1155A1.pdf.
I. Introduction
1. In this Order, the Wireline Competition Bureau (Bureau)
clarifies certain rules relating to Phase I of the Connect America
Fund. Commission staff have received informal inquiries from price cap
companies on certain implementation aspects of the rules governing
Connect America Fund Phase I. The Bureau also makes an amendment to one
of the Commission's rules to fix a clerical error relating to the
support for carriers serving remote areas of Alaska.
II. Background
2. In the USF/ICC Transformation Order, 76 FR 73830 (November 29,
2011), the Commission adopted a framework for the Connect America Fund
to provide support in the territories of price cap carriers and their
rate-of-return affiliates based on a combination of competitive bidding
and a forward-looking cost model. The Commission observed that
developing a new cost model and bidding mechanism could be expected to
take some time. To spur broadband deployment even as those mechanisms
are being developed, the Commission established Phase I of the Connect
America Fund, a transition mechanism from the old high-cost support
mechanisms for price cap carriers to the new Connect America Fund. In
Phase I, the Commission froze current high-cost support for price cap
carriers and their affiliates, and, in addition, committed up to $300
million in incremental support to promote broadband deployment. The
$300 million in incremental support was allocated among price cap
carriers using a formula to estimate wire center costs that was based
on the prior high-cost proxy model.
3. Participation in the Connect America Fund Phase I incremental
support program is optional. But carriers that accept funding are
required to deploy broadband to a number of locations, currently
unserved by fixed broadband, equal to the amount of incremental support
the carrier accepts divided by $775. Each carrier accepting funding
must identify the areas, by wire center and census block, in which it
intends to deploy broadband to meet its obligation, when it files its
notice of acceptance. Carriers are required to complete deployment to
no fewer than two-thirds of the required number of locations within two
years and all required locations within three years, and they must
certify that they have done so as part of their annual certifications
under Sec. 54.313 of the Commission's rules. The Commission also
provided that ``[c]arriers failing to meet a deployment milestone will
be required to return the incremental support distributed in connection
with that deployment obligation and will be potentially subject to
other penalties, including additional forfeitures, as the Commission
deems appropriate.'' However, the Commission continued, ``[i]f a
carrier fails to meet the two-thirds deployment milestone within two
years and returns the incremental support provided, and then meets its
full deployment obligation associated with that support by the third
year, it will be eligible to have support it returned restored to it.''
III. Discussion
4. First, the Bureau clarifies how to calculate the amount of
support a carrier must return for failing to meet its deployment
requirements. Specifically, if a carrier fails to meet its deployment
obligations, it will be required to return to the Commission an amount
equal to $775 multiplied by the number of locations to which the
carrier was required to deploy to but did not, but a carrier will not
be required to ``pay twice'' for any failure to meet a requirement. For
example, if a carrier accepted $6,975,000 and committed to deploying to
9,000 locations over three years, but only deployed to 5,800 by the end
of two years, rather than the 6,000 required at that milestone, the
carrier would be required to return $155,000 of its incremental support
(200 locations times $775). Similarly, a carrier that accepted the same
amount and deployed to all 6,000 locations by the second year but
deployed to only 8,900 by the end of the third year would be required
to return $77,500 (100 locations times $775). However, if the same
carrier deployed to 5,800 of its required 6,000 locations by the second
year, returned the $155,000 required, and then continued its
deployment, reaching 8,900 by the end of the third year, it would have
$77,500 of its returned support restored. The Bureau notes that this
discussion does not address any additional penalties that the
Commission may choose to impose on any carrier that fails to meet its
deployment obligation, as stated in the Order.
5. Second, the Bureau clarifies that when a carrier files its
notice of acceptance of funding, identifying the wire centers and
census blocks in which it intends to deploy, it is not binding itself
to deploy only in those areas, nor is it committing to deploy to every
unserved location in those areas. The Bureau clarifies that carriers
are expected to make a good faith effort to identify where they will
deploy when they file their notices of acceptance. The Bureau observes,
in this regard, that there are a number of practical obstacles that may
make it difficult for carriers to commit irrevocably to a particular
deployment plan by July 24th. For example, carriers may not have
perfect information now about the number of locations in every
potential area, the number of locations in an area may change over
time, and the aggressive schedule for identifying intended buildout
locations may make it difficult for carriers to gain complete
information about potential deployments prior to filing their notices
of acceptance. Accordingly, the Bureau clarifies that carriers may, in
satisfaction of their deployment requirement, deploy to eligible
locations not identified in their notices of acceptance, but will be
required to identify subsequently where deployment actually occurred.
Similarly, if a carrier finds that deploying to an area it intended to
deploy to would be impractical, it will not be subject to penalties on
account of its failure to deploy broadband to that particular area.
6. Third, the Bureau clarifies that the certification associated
with carriers' two- and three-year deployment milestones, which
carriers must include as part of their annual filings under Sec.
54.313(b) of the Commission's rules, must specify the number of
locations in a census block-wire center combination to which they have
actually built. Carriers must identify the precise number of locations
so that appropriate adjustments, if any, can be made to support
previously provided, if a carrier fails to meet its deployment
obligation. To facilitate the ability of USAC and the Commission to
validate that carriers have, in fact, met their deployment obligations,
carriers must be prepared, upon request, to provide sufficient
information regarding the location of actual deployment to confirm the
availability of service at that location.
7. Fourth, the Bureau clarifies that the certifications each
carrier makes when it accepts incremental support--that the locations
to be deployed to are shown on the National Broadband Map as unserved
by fixed broadband by any provider other than the certifying entity
[[Page 52618]]
itself or an affiliate; that, to the best of the carrier's knowledge,
the locations are, in fact, unserved by fixed broadband; that the
carrier's capital improvement plan did not already include plans to
complete broadband deployment within the next three years to the
locations to be counted to satisfy the deployment obligation; and that
incremental support will not be used to satisfy any merger commitment
or similar regulatory obligation--are certifications that apply to all
locations that in fact the carrier extends broadband to, using Connect
America Phase I incremental support. That is, if a carrier finds it
necessary to deploy to locations other than the locations identified in
its initial acceptance filing, those other locations may not be in
areas, for example, that were shown on the National Broadband Map, at
the time of acceptance, as served.
8. Fifth, the Bureau clarifies that when a carrier certifies that
the locations to which it will deploy are shown as unserved by fixed
broadband on the ``current'' version of the National Broadband Map, the
``current'' version of the National Broadband Map is the version that
was publicly available on the National Broadband Map Web site on the
date eligible support amounts were announced. The Commission intended
for carriers to have 90 days to determine how much incremental support
they would accept and which wire centers and census blocks they would
deploy to in order to meet their Connect America Phase I commitments.
To the extent the National Broadband Map data is updated during the 90-
day period in which carriers are evaluating how much incremental
support they will accept, that could leave carriers with less time to
evaluate the updated version of the map. Potentially altering Connect
America Phase I incremental support deployment plans before the
deadline for them to accept funding would be unreasonable and contrary
to the Commission's framework for Connect America Phase I funding, and
we clarify the requirement to ensure that carriers have a full 90 days
to make their Connect America I Phase plans.
9. Sixth, the Bureau further clarifies that the term ``fixed
broadband'' for the purposes of Connect America Phase I includes any
technology identified on the then-current version of the National
Broadband map that is not identified as a mobile technology or a
satellite-based technology. In this regard, the Bureau observes that
the technologies reported on the National Broadband Map at the time the
Order was issued varied from the technologies listed on the Broadband
Map currently. The Commission in the Order distinguished fixed
terrestrial broadband technologies from mobile and satellite broadband
technologies, determining that only fixed terrestrial broadband
technologies are relevant to the determination of whether an area is
served for the purposes of Connect America Phase I; the clarification
the Bureau provides here reflects this distinction.
10. Finally, the Bureau corrects Sec. 54.307(e)(5) of the
Commission's rules. Paragraph 180 of the first erratum to the USF/ICC
Transformation Order corrected Sec. 54.307(e)(5) to replace
``described in paragraph (e)(2)(iv) of this section'' with ``described
in paragraph (e)(2)(iii) of this section.'' The text to be replaced
appeared twice in Sec. 54.307(e)(5), but, through a clerical error,
only the second instance of that text in the rule was corrected. We now
correct the rule to replace the remaining instance of that text.
IV. Procedural Matters
A. Paperwork Reduction Act
11. This document does not contain new or modified information
collection requirements subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. Therefore, it does not contain any new or
modified information collection burden for small business concerns with
fewer than 25 employees, pursuant to the Small Business Paperwork
Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
B. Final Regulatory Flexibility Act Certification
12. The Regulatory Flexibility Act of 1980, as amended (RFA),
requires that a regulatory flexibility analysis be prepared for
rulemaking proceedings, unless the agency certifies that ``the rule
will not have a significant economic impact on a substantial number of
small entities.'' The RFA generally defines ``small entity'' as having
the same meaning as the terms ``small business,'' ``small
organization,'' and ``small governmental jurisdiction.'' In addition,
the term ``small business'' has the same meaning as the term ``small
business concern'' under the Small Business Act. A small business
concern is one which: (1) Is independently owned and operated; (2) is
not dominant in its field of operation; and (3) satisfies any
additional criteria established by the Small Business Administration
(SBA).
13. This Order clarifies, but does not otherwise modify, the USF/
ICC Transformation Order. These clarifications do not create any
burdens, benefits, or requirements that were not addressed by the Final
Regulatory Flexibility Analysis attached to USF/ICC Transformation
Order. Therefore, the Bureau certifies that the requirements of this
Order will not have a significant economic impact on a substantial
number of small entities. The Commission will send a copy of the Order
including a copy of this final certification in a report to Congress
pursuant to the Small Business Regulatory Enforcement Fairness Act of
1996. In addition, the Order and this certification will be sent to the
Chief Counsel for Advocacy of the Small Business Administration, and
will be published in the Federal Register.
C. Congressional Review Act
14. The Commission will send a copy of this Order to Congress and
the Government Accountability Office pursuant to the Congressional
Review Act.
V. Ordering Clauses
15. Accordingly, it is ordered, pursuant to the authority contained
in sections 1, 2, 4(i), 201-206, 214, 218-220, 251, 252, 254, 256,
303(r), 332, and 403 of the Communications Act of 1934, as amended, and
section 706 of the Telecommunications Act of 1996, 47 U.S.C. 151, 152,
154(i), 201-206, 214, 218-220, 251, 252, 254, 256, 303(r), 332, 403,
1302, and pursuant to Sec. Sec. 0.91, 0.201(d), 0.291, 1.3, and 1.427
of the Commission's rules, 47 CFR 0.91, 0.201(d), 0.291, 1.3, 1.427 and
pursuant to the delegation of authority in paragraph 1404 of FCC 11-161
(rel. Nov. 18, 2011), that this Order is adopted, effective October 1,
2012.
Federal Communications Commission.
Trent Harkrader,
Division Chief, Telecommunications Access Policy Division, Wireline
Competition Bureau.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 54 to read as follows:
PART 54--UNIVERSAL SERVICE
0
1. The authority citation for part 54 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 201, 205, 214, 219, 220, 254,
303(r), 403, and 1302 unless otherwise noted.
0
2. Amend Sec. 54.307 by revising paragraph (e)(5) to read as follows:
Sec. 54.307 Support to a competitive eligible telecommunications
carrier.
* * * * *
(e) * * *
[[Page 52619]]
(5) Implementation of Mobility Fund Phase II Required. In the event
that the implementation of Mobility Fund Phase II has not occurred by
June 30, 2014, competitive eligible telecommunications carriers will
continue to receive support at the level described in paragraph
(e)(2)(iii) of this section until Mobility Fund Phase II is
implemented. In the event that Mobility Fund Phase II for Tribal lands
is not implemented by June 30, 2014, competitive eligible
telecommunications carriers serving Tribal lands shall continue to
receive support at the level described in paragraph (e)(2)(iii) of this
section until Mobility Fund Phase II for Tribal lands is implemented,
except that competitive eligible telecommunications carriers serving
remote areas in Alaska and subject to paragraph (e)(3) of this section
shall continue to receive support at the level described in paragraph
(e)(3)(v) of this section.
* * * * *
[FR Doc. 2012-21314 Filed 8-29-12; 8:45 am]
BILLING CODE 6712-01-P
